September was another eventful month for Prosper. We closed the month with $33.1 million in loans originated through the Prosper platform, marking the 7th straight month of record-setting loan originations.
Last month, I mentioned a series of changes made to the Prosper platform that we anticipated would have a positive impact overall. In September, we had the opportunity to see the initial impact of these changes and we are very excited at the results so far. September finished with $59 million in loan requests through the Prosper platform, a 24% increase over July’s loan requests of $47.6 million and our best month yet. October daily originations have benefited from the listing activity in the later part of September and we continue to see more and more borrowers finding loan options that meet their needs.
The two main changes impacting the results are:
- Improved borrower experience: Early on in September we launched a new borrower onboarding experience that makes it easier for people to come to the Prosper website and quickly make their way through the borrower application process. Part of this change included the removal of the loan description and loan title fields. We have received extensive feedback from our lenders to add these fields back to the borrower application. We appreciate all your feedback and participation in this conversation. We are exploring options that will meet everyone’s needs and I will let you know when I have more information.
- FICO 08® score transition: also early on in September, we transitioned over to the FICO 08® scoring model. This change, in conjunction with the Prosper Rating system, has strengthened our credit policy as anticipated. FICO 08® directly aligns us with industry standards and enables us to get more competitive with our rates and offers. Stay tuned for more feedback on the impact of this change.
We also had some other exciting announcements in September. To name a few;
- Prosper Raises $25M in New Round: At the end of September, we announced that Prosper raised $25 million in additional funding to accelerate the company’s growth at a time when peer-to-peer lending is attracting a record number of borrowers and lenders. The round, which was led by existing partner Sequoia Capital, also included a new investment by BlackRock, the world’s largest asset manager. You can read more in the media articles linked below.
The New York Times DealBook: Prosper Raises $25 Million in New Round Adding BlackRock as a Backer
VentureBeat: P2P Lending Platform Lines Coffers with $25M in New Funding
TechCrunch: Lending Marketplace Prosper Locks down $25M from Sequoia, BlackRock
- The Prosper TV Commercial: To get the word out to more people about the great opportunity to borrow through Prosper, we also launched an advertising campaign that will run across various cable channels including CNN, ESPN and Bloomberg. To view the commercial click here.
- Welcome Dr. Elan Amir: Starting this month we have the good fortune to add Dr. Elan Amir to the Prosper Marketplace executive team. Elan joins us as Chief Product Officer. He brings with him a wealth of background and experience in product development, operations, and management. Read his complete bio here.
If you’re looking to get involved in the P2P conversations, Ron Suber, Head of Global Institutional Sales for Prosper Marketplace will be speaking at the following upcoming events in October.
- Crowdfunding Roadmap Bootcamp, Las Vegas (October 15)
- LSTA 18th Annual Conference, New York (October 17)
Stay tuned for more information and changes to come. Open to questions and comments below. Thanks for reading!
President, Prosper Funding LLC